THE SENATE

S.B. NO.

1342

THIRTY-SECOND LEGISLATURE, 2023

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO DEPARTMENT OF EDUCATION PROCUREMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  As the largest department in the State with two hundred ninety-five schools and forty-two thousand salaried and part-time employees, the department of education must procure numerous goods, services, and construction to run its operations.  However, chapter 103D, Hawaii Revised Statutes (the Hawaii public procurement code), mandates that the department comply with procurement laws for its purchases triggered by certain threshold amounts.  Abbreviating certain small purchase procurement requirements for the department of education will help the department procure timely and necessary goods, services, and construction.  The legislature also finds that the electronic system, due to its complicated and onerous nature, places a heavy burden on school administrators seeking to address repair and maintenance backlogs and further strains the already limited time and resources of these school administrators.

     Furthermore, with the recent influx of federal funding, including the maintenance of effort provisions within the Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136, the department of education needs to have additional flexibility to expend federal funds in a timely manner.

     The purpose of this Act is to exempt the department of education from the electronic procurement system requirements for small purchases and to adjust the quote requirements for the purchase of goods and services under $100,000 and construction under $250,000, applicable to the department of education.

     SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is amended by adding to part V a new section to be appropriately designated and to read as follows:

     "§302A-     Education goods and services procurement; small purchases.  (a)  Notwithstanding section 103D-305(c) and any other law to the contrary, procurements of less than $100,000 for goods and services for the department shall be exempt from the requirement to conduct such procurements through an electronic system and shall only be subject to:

     (1)  No less than three quotes for procurements of $5,000 to less than $15,000; and

     (2)  No less than three written quotes for procurements of $15,000 to less than $100,000."

     SECTION 3.  Chapter 302A, Hawaii Revised Statutes, is amended by adding to part VI a new section to be appropriately designated and to read as follows:

     "§302A-     Education construction procurement; small purchases.  (a)  Notwithstanding section 103D-305(c) and any other law to the contrary, procurements of less than $250,000 for construction for the department shall be exempt from the requirement to conduct such procurements through an electronic system and shall only be subject to:

     (1)  No less than three quotes for procurements of $5,000 to less than $15,000; and

     (2)  No less than three written quotes for procurements of $15,000 to less than $250,000."

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST

 

 

Report Title:

Procurement; Department of Education; Small Purchases; Exemption from Electronic Procurement System Requirement

 

Description:

Adjusts the Department of Education's small purchase threshold to require no less than three quotes for purchases of goods, services, and construction between $5,000 to less than $15,000, and to require no less than three written quotes for purchases of goods and services between $15,000 to less than $100,000 and for purchases of construction between $15,000 to less than $250,000.  Exempts the Department of Education from the electronic procurement system requirement for purchases of goods and services less than $100,000 and for purchases of construction less than $250,000.

 

 

 

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